Derivatives and Trading in Derivatives, Basic Concepts and Strategies

Gerhard Larcher
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Gerhard Larcher: Johannes Kepler University of Linz

Chapter 2 in The Art of Quantitative Finance Vol.1, 2023, pp 91-187 from Springer

Abstract: Abstract We define the basic types of derivatives, namely, European and American plain-vanilla call- and put-stock-options and futures and we discuss fundamental properties. We introduce the most basic option-strategies like straddles, protective puts, and covered calls. We discuss the question which type of investor is especially interested in which type of application of derivatives. We also give details on how to trade options and futures on an electronic trading platform and on margin requirements for short positions in derivatives.

Keywords: Financial derivatives; Plain-vanilla options; American options; Basic option strategies; How to trade options; Option combinations; SPX options; Futures; Euro-Bund Futures (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-031-23873-4_2

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DOI: 10.1007/978-3-031-23873-4_2

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